LIBERTY to decarbonise Dunaferr in Hungary

LIBERTY and CISDI to collaborate with the Hungarian Ministry of Economic Development on the decarbonisation of Dunaferr

LIBERTY Steel Group (“LIBERTY”), China’s CISDI Engineering Co. (“CISDI”) have today formed a
partnership, in collaboration with the Hungarian Ministry of Economic Development, to prepare for
the decarbonisation of the Dunaferr steel works.

LIBERTY and CISDI will develop and implement a decarbonisation pathway which will see the
Dunaferr plant shift from coal based steel making to Electric Arc Furnace technology, and in doing so
reduce direct CO2 emissions by approximately 80%. The plans, which are subject to EU regulatory
approval, will see the installation of a new 150t capacity Electric Arc Furnace to be supplied by CISDI.
The state-of-the-art furnace carries the latest in energy efficient technology and allows for flexibility
in charge materials, which would significantly enhance the competitiveness of the Dunaferr
operation.

LIBERTY and CISDI will bear the primary responsibility for the technical aspects of the project, while
the Hungarian Ministry of Economic Development has committed to exploring support for the
project’s delivery through its administrative processes. Bringing together the plant operator,
equipment supplier and the Ministry into a single collaborative arrangement will ensure the
decarbonisation plan can be effectively implemented.

The parties today signed an MoU in Budapest setting out the terms of collaboration in the presence
of senior executives from LIBERTY, CISDI and the Hungarian Ministry of Economic Development.
Sanjeev Gupta, LIBERTY’s Executive Chairman, said: “We’re transitioning to lower carbon
technologies at speed across our global operations and we intend to do the same at Dunaferr. We
know from experience that to move quickly you need the support of world class technology partners,
the right financing structures and a supportive government, which is why the formation of this group
is so important. We look forward to developing these plans with CISDI and the Ministry of Economic
Development to ensure we put the Dunaújváros steelworks on a sustainable, competitive pathway as
quickly as possible.”

Márton Nagy, Minister of Economic Development, said that “We have come a long way in the past
year. As while thousands of jobs were endangered due to the negligence of the previous
irresponsible management, and last December even the coal supply was not guaranteed at the plant,
today we are witnessing the signing of an agreement that will lay the foundation for green steel.”

production in Dunaújváros, which is the future of the steel industry. This will provide long-term
security and predictability for thousands of jobs. Moreover, Dunaferr’s role is also of national
economic importance, as domestic steel production also contributes to increasing economic
sovereignty”.

Xiao Xuewen, Chairman of CISDI Engineering Co Ltd: “It is a great honour for us that we can once
again work for Liberty Group in the green transformation and decarbonisation of the Dunaferr plant
in Hungary. For implementation of the EAF project, we will, as always, fully exert our professionalism
to achieve high-quality delivery, spare no effort to provide all our technical support for the Liberty
Group to achieve production of Green Steel and be carbon-neutral in Europe.”
Notes on the terms of agreement

• LIBERTY and CISDI will bear the primary responsibility for the technical aspects of the project,
  including design, engineering, procurement of equipment, and technology services.
• The Hungarian Ministry for Economic Development will explore how it can support the
  project, including exploring how to facilitate any required administrative processes for the
  establishment of the EAF facility.
• The parties will establish a joint working group comprising representatives from each party
  to oversee the project’s progress, address challenges, and ensure effective communication.
• The parties will collaborate to ensure that the new Electric Arc Furnace meets or exceeds
  relevant environmental and sustainability standards.